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Personalisation, Explained

By Brianna Riley • Monday Sep 30th, 2019

Every customer wants to enter a shop and be immediately presented with their favourite items, finding everything they need in a matter of minutes.

In real life, you may call this personal shopping. In eCommerce, we call this personalisation.

What is Personalisation?

Personalisation is a term used a lot by online retailers. It can best be described as the creation of personal interactions and experiences on eCommerce websites by dynamically showing content, media or product recommendations, based on browsing behaviour, purchase history data, demographics and psychographics.

Personalisation is becoming increasingly important to online retailers seeking to, not only engage shoppers, but to increase sales, boost their conversion rate, drive repeat purchases and encourage customer loyalty.

No two consumers are the same - why offer both of them the same thing?

Why is Personalisation so effective?

One-size-fits-all marketing is long gone.

Research found 80% of consumers are more likely to make a purchase when brands offer personalised experiences (Epsilon).

It’s simple. Personalisation delivers results purely because users respond best to content that speaks directly to them.

The intelligent use of collected data allows eCommerce retailers to fine-tune each customer’s experience into an journey that is personalised and unique to them. Not only does this hold consumers’ attention for longer, it encourages repeat purchases due to increased customer loyalty.

The more personalised a customer’s experience is, the more likely they are to take targeted action.

Remember to not think of personalisation as an add-on, 63% of online shoppers now expect it as standard. This makes it fundamental to a customer’s online shopping experience.

How to utilise Personalisation?

Product Recommendations

Product recommendations are the cornerstone of personalisation.

45% of consumers are more likely to shop on a site that offers personalised recommendations, and 56% of online shoppers are more likely to return to a site that offers product recommendations (Evergage). With these statistics, it’s no surprise that product recommendations account for 31% of eCommerce revenue.

Using personalised product recommendations, eCommerce retailers are able to present customers with highly relevant products at multiple touch points of their shopping process.

Whether it’s a large chunk of historical data or an individual’s browsing history, product recommendations are based on user behaviour. These recommendations could be products that have been viewed, added to basket or purchased in correlation to the current product the customer is browsing.

If you’re aware of what your customers want or what they are browsing, upselling or cross-selling is a no brainer. Display complementary products next to the products they are browsing, or if you want to take it a step further, offer a discount if they spend over a certain threshold.

Not only are product recommendations fundamental for a personalised shopping experience, they make it both easier and quicker for eCommerce retailers to guide customers through their conversion funnel.

On-site Notifications

On-site notifications (often known as ‘smart alerts’ or pulses’) can communicate both useful information and friendly reminders to customers in a precise and timely fashion and more importantly, in a way that the customer feels is specifically for them.

Smart alerts are often the most beneficial in employing scarcity, a marketing tactic that uses the fear of loss to sell more, increasing a customer’s perceived value of a product.

Research into scarcity marketing shows that customers place a higher value on products that are of limited availability.

Smart alerts can be used for stating how many customers are currently looking at the same product, how many times the product has been purchased in the last 24 hours or offering a discount code that expires in an hour.

When consumers find out that their favourite product is almost out of stock or they only have 48 minutes left to use their discount code, the customer purchases a lot faster and often with less thought.

All the while, customers are under the impression that these friendly reminders are for them and them only.

Email Retargeting

When it comes to email marketing, personalisation pays off. Personalised emails improve click-through rates by 14% and deliver 6x higher transaction rates.

With the average cart abandonment rate standing at 69.57%, any eCommerce retailer failing to utilise personalised email retargeting is passing up on a huge opportunity to recover lost sales.

As with most personalisation strategies, personalised email retargeting varies in complexity.

Basic retargeting can include using the user’s name or a personalised subject line. More advanced retargeting can include strategically including dynamic content, such as product recommendations and promotional offers, based on a user’s gender, browsing history and purchase data.

Personalised email retargeting can be a lot simpler than eCommerce retailers think. Using list segmentation, retailers are able to separate their email list into smaller groups based on their age, location, gender and opt-in status. This data then makes it easier to tailor content around a user’s specific information, including their browsing history, purchase history and location.

Personalised emails stand out within a customer’s inbox, strengthen a customer’s experience and make it much easier to deliver the right content to the right people at the right time.

In recent years, eCommerce retailers have lost £585 billion because of poor personalisation. Don’t be one of them.

For more information on creating a personalised experience for your consumers, book a free demo with our CRO experts today by emailing us at enquiries@salesfire.co.uk or call us at 01642 433 044.

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